Triodos Sustainable Equity Fund (SICAV/Offshore*)
SRI / Ethical Overview
- Please note this fund is only currently available via www.Triodos.co.uk
- Triodos Sustainable Equity Fund invests in global equities issued by listed companies offering strong financial performance combined with high social and environmental standards.
- At the heart of our SRI philosophy lies the belief that in the long term, the most successful businesses will be those that achieve the right balance between their social, environmental and economic performance.
- We carry out rigorous best-in-class selection of sustainability performance, with strict minimum standards .
- We offer the opportunity to influence the sustainable practices of large companies .
- Risks diversified across sectors and continents
SRI / themed / ethical assets under management – overview
- Fund Size (GBP): 462,327,902.67
- Total assets under management: EUR 3.3 billion total assets under management
SRI Policies (Primary strategy in bold)
- Environmental policy Find investment funds with environmental policies - ie that consider issues such as pollution, climate change, resource management, environmental impact. This will include options from all of the different SRI Styles, including funds where their core strategy is to focus on other areas such as ethical funds. See fund information for fund specific policy details.
- Ethical policies Find funds with 'traditional' ethical investment policies. These typically focus on avoiding companies that are involved in the armaments industry, tobacco, gambling and/or pornography. Options will include funds where their core strategy or style may be to focus other issues - like sustainability or the environment, not just 'ethical funds'. Strategies vary significantly. Check fund literature for details.
- Sustainability policy Find fund options that consider issues relating to the sustainability agenda (e.g. resource management, environmental impact, climate change and/or social issues such as equal opportunities, human rights and adherence to recognised codes). This will include funds from all of the different SRI Styles. See fund information for explanations of the different strategies.
- Social policy Find fund options that consider social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). This will include funds in most of the different SRI Styles as this is considered a core issue. See fund information for detail.
- Governance policy Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices.
- Animal welfare policy Find ethical fund options that have policies that require specific animal welfare standards to be adopted by investee companies in order for them to be considered for inclusion within the fund.
- Animal testing exclusion policy Find ethical investment options that avoid companies that are involved in testing their products on animals. Ethical fund strategies vary - some exclude all companies that test on animals, others allow companies that test for medical purposes or where required by law. Read fund details for fund specific information.
- Tobacco production avoided Find fund options that exclude manufacturers of tobacco (or related) products. This typically relates to ethical funds however funds from other SRI Styles commonly avoid this area also. Strategies vary and funds may invest in retailers of such products (e.g. supermarkets or hotels.) See fund information for further information.
- Armaments manufacturers avoided Find ethical fund (and other SRI) options that avoid avoids companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non strategic military products. Read fund literature for specific details.
- Health & wellbeing policies Find ethical or sustainable investment fund options that have a policy which supports (ie aims to invest in) companies that are viewed as offering positive lifestyle, health or wellbeing related benefits.
- Nuclear exclusion policy Find ethical funds (and other options) that have a published policy that sets out the fund's position on avoiding or limiting exposure to nuclear power. See fund literature for details of their policy.
- Coal, oil &/or gas majors excluded Find sustainable investment and ethical fund options that avoid significant involvement in coal, oil and/or gas producing companies. Funds vary. See individual fund literature to confirm details.
- Climate change / GHG policy Find sustainable investment and ethical fund options that pay significant attention to climate change related issues such as greenhouse gas/carbon emissions. Strategies vary, see fund literature for individual fund information.
- Fracking and tar sands excluded Find fund options that avoid companies involved in fracking and tar sands - which are widely regarded as more controversial methods of oil and gas extraction.
- Gambling avoidance policy Find ethical fund options (and other options) that avoid companies with significant involvement in the gambling industry. See fund policy for details.
- Pornography avoidance policy Find ethical fund option - and in some cases other options - that avoid companies that derive significant income from pornography. See fund details for further information.
- Human rights Find funds that consider human rights practices when approving companies for investment. Such funds will require decent standards of human rights to be demonstrated - which typically means adherence to international norms as a minimum standard.
- Balances company 'pros and cons'/best in sector Find ethical funds and other options that consider both the 'positive' things companies do and the 'negative' things they do in order to make balanced, often complex decisions about where they might invest. Such funds often invest in the best/most ethical companies across most industries ('best in sector'), rather than excluding entire sectors. The fund manager may combine this with 'responsible engagement' activity to encourage better business practices. See fund literature for specific policy explanations.
- Favours companies with strong social policies Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.
- Sustainability themed Find funds where there is a significant emphasis on sustainability issues either as its primary strategy or as a core strategy that compliments other criteria. (This may apply to a number of different SRI Styles). Such funds will consider environmental and social issues when making stock selection decisions. Read fund literature for further information.
- Eurosif transparency Find funds that meet the standards of the EUROSIF transparency Code. This means that they are a leading fund in terms of openness and transparency, publishing - for example - extensive information about where they invest and how they deal with companies.
- Positive selection bias Find funds where their main 'ethical approach' is to invest in companies that are considered to be positive/good or useful to people and/or the environment. The fund may also have negative avoidance criteria - see fund details to read more about fund strategies.
- Over 50% large cap Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
- Favours cleaner, greener companies Find funds that aim to nvest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts. Read fund literature for further information.
- Available via an ISA Find funds that are available via a tax efficient ISA product wrapper
- Clean energy themed Find funds that in clean technology / clean energy companies. See fund information for further details.
- ESG/SRI engagement Find funds and fund management companies that actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. This may apply to a single fund or a group of funds. Read fund literature for further information.
- PRI signatory Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment' initiative.
SRI / Ethical Policy
Through Triodos Sustainable Equity Fund, you can invest in listed companies that combine a strong financial position with solid social and environmental performance. In addition to the usual risk and return analysis, we make a thorough assessment of how sustainable these companies are. We consider only companies that clearly outperform others within their sectors on sustainability, and that comply with our strict minimum standards.
As an investor, we aim to stimulate the transition to a society where growth is not just measured in numbers. We connect individual and institutional investors who want to invest in positive change of society with like-minded, innovative entrepreneurs and sustainable businesses.
Our research team selects the companies for inclusion in our sustainable investment universe. The team applies positive selection criteria. Companies that outperform their peers in environmental, social and governance impact qualify for inclusion. The team also sets the minimum standards that companies are required to comply with. The research team keeps track of the latest thinking on sustainability issues and monitors legislative and regulatory developments, ensuring that our selection process is based on the most relevant and reliable information available. We obtain basic sustainability data from Sustainalytics*, with whom we have an active and long-standing relationship. Our sustainability criteria are far-reaching and dynamic. Changes in these criteria may be prompted by legislation, public debate, best practice standards or company behaviour. For a broader perspective on what are often very complex issues, we maintain regular contact with leading international experts and stakeholder groups.
* Sustainalytics is an independent responsible-investment research firm who specialise in environmental, social and governance research and analysis. Triodos Bank is one of the founding partners of Sustainalytics.
To ensure companies meet our social and environmental requirements, they are screened against a wide range of criteria, in a three stage process:
Step 1: Sustainable activities
We've identified certain types of products and services that contribute to the health and wellbeing of people and planet. Any company that derives over 50% of its revenues from sustainable activities of this kind qualifies for Triodos investment, provided they also pass step 3.
Step 2: Best-in-class
Companies that don't meet the step 1 criterion above can still qualify for investment if their all-round sustainability performance puts them among the best in their sector. We assess this using over 70 generic and sector-specific criteria, relating to environmental, social and governance issues. And companies whose score puts them in the top 50% within their sector qualify for Triodos investment, provided they also pass step 3.
Step 3: Minimum standards
All companies that are selected must meet strict minimum standards. The screening process takes a zero tolerance approach on five activities, completely excluding all investments in nuclear power, oil and gas, hazardous materials, and weapons. In addition to this there are strict minimum standards applied in other sectors such as alcohol, tobacco, and pornography. See full details of our strict minimum standards.
Companies that qualify through steps 1 or 2 must also meet these requirements before we'll consider investing in them.
Once companies have passed step 3, they are added to the sustainable investment universe.
Active engagement and dialogue with the companies we may invest in are key elements of our SRI strategy. We aim to raise awareness of sustainability, to stimulate action and to create lasting positive change. Once selected for our sustainable investment universe, we continue to follow companies. When there is a potential breach of our minimum standards, we investigate in depth and usually approach the company about it. At all stages of our engagement, it remains a possibility that the company may end up being excluded from the Triodos sustainable investment universe.
Resources, Affiliations & Corporate Strategies
Triodos Bank’s investment activities are managed by wholly-owned subsidiary Triodos Investment Management. Triodos Investment Management has its own Sustainability Research Department, responsible for keeping us up to date with the latest thinking on sustainability issues. It also monitors legislative and regulatory developments, and ensures that our selection process is based on the most relevant and reliable information available.
The research team assesses new candidates for sustainable investment and monitors companies that have already been selected. Selected companies are reassessed every three years.
The financial management of this fund is handled by Delta Lloyd Asset Management NV, which invests in companies included in the Triodos investment universe that are likely to generate the highest financial returns.
Our partners and networks
We are part of an international network of organisations who share our commitment to impact and socially responsible investing in a transparent and sustainable way:
- We participate in the Global Impact Investing Network (GIIN), of which we are co-founder.
- We are a signatory to the United Nations Principles for Responsible Investment (UNPRI).
- We are a member of the European Sustainable Investment Forum (Eurosif).
- We are a signatory to the European SRI Transparency code.
- We are a member of the International Corporate Governance Network.